Callon Petroleum to acquire core Delaware Basin assets, exit Eagle Ford

Callon Petroleum signed two definitive agreements that streamline and focus Callon’s operations, accelerate the achievement of its debt reduction target and allow for the initiation of a shareholder return program in the third quarter of 2023. Callon has entered into a definitive agreement to acquire the membership interests of Permian-based Percussion Petroleum Operating II in a cash and stock transaction valued at approximately $475M and potential contingent payments of up to $62.5M. Under the terms of the agreement, Percussion will receive $265M of cash and a maximum of 6.46M shares of Callon common stock. The transaction is structured as the acquisition by Callon Petroleum Operating Company of 100% of the limited liability company interests of Percussion. Under a separate agreement, Callon agreed to sell all its assets in the Eagle Ford Shale to Ridgemar Energy Operating for $655M in cash and potential contingent payments of up to $45M. The transaction is structured as the acquisition by Ridgemar of 100% of the limited liability company interests of Callon’s wholly owned subsidiary Callon LLC. The transactions are subject to customary terms and conditions and are expected to simultaneously close in July 2023, both with an effective date of January 1, 2023.